Latest news with #HBM3E
New Straits Times
4 hours ago
- Automotive
- New Straits Times
Samsung says tariff agreement reduces uncertainty, expects boost from Tesla deal
SEOUL: Samsung Electronics said a trade deal between South Korea and Washington will help to alleviate business uncertainty, as the technology giant forecast more major chip orders after signing a US$16.5 billion deal with Elon Musk's Tesla. US President Donald Trump said the US will charge a 15 per cent tariff on imports from South Korea as part of the deal that eases, for now, tension with a top-10 trading partner and key Asian ally. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, had faced a 25 per cent rate. The tariff deal comes days after Tesla said it had signed a deal to source chips from Samsung, a move that analysts said could help the tech giant's struggling contract business. "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said on an earnings call, referring to its struggling contract chipmaking business. Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. "The key to the Tesla order is how much Samsung would be able to address production yield issues for its advanced 2 nanometer chips," said Greg Roh, head of research at Hyundai Motor Securities. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing, which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won (US$3.37 billion) in operating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94 per cent from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. FOCUS ON AI CHIPS Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres and sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung on Tuesday did not give an update to the plan, while warning that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has also provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. Customers for this chip are also expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half of the year, driven by AI chip demand due to continued investments by major cloud service providers. Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7 per cent to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters the figure has dropped below the 1 trillion won mark. Samsung said in a statement inventory value adjustments to memory chips and one-off costs from the impact of US. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Samsung said smartphone demand, which had rebounded in the first half thanks to stockpiling ahead of US tariffs and China subsidies, is expected to see slowing growth in the second half. For TVs, Samsung expected demand to slightly decline due to inflation and economic uncertainty in the second half from a year earlier. Shares of Samsung were down 1.8 per cent in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5 per cent lower.
Hans India
6 hours ago
- Business
- Hans India
Samsung's Q2 net income drops nearly 50 pc due to sluggish chip biz
Seoul: Samsung Electronics said on Thursday that its net income plunged nearly 50 per cent in the second quarter (Q2), as its semiconductor division logged its lowest earnings in over a year due to sluggish demand for high bandwidth memory (HBM). In a regulatory filing, the company reported a net income of 5.11 trillion won (US$3.7 billion) for the April-June period, down 48 percent from 9.84 trillion won a year earlier, reports Yonhap news agency. The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 7.29 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Operating profit stood at 4.67 trillion won, down 55.2 percent from a year ago, while revenue rose 0.7 percent to 74.56 trillion won. The semiconductor division posted 400 billion won in operating profit, the lowest since the fourth quarter of 2023, when it recorded a 2 trillion-won operating loss. Samsung Electronics attributed the weak bottom line in its chip division to one-off costs, such as inventory value adjustments. Despite a weak profit, chip sales climbed 11 percent on-year to 27.9 trillion won, driven by demand for premium server chips and increased foundry orders. Its main memory business posted stable growth, supported by sales of HBM3E products and memory for data centre servers. However, the fabless segment, or System Large Scale Integration (LSI), continued to struggle with low profitability, and the foundry business saw its profit worsen due to inventory adjustments linked to U.S. sanctions on artificial intelligence (AI) chip exports to China. Its DX division, which includes mobile, TV and home appliance businesses, saw its sales fall 16 percent on-year to 43.6 trillion won amid intensifying competition, while posting 3.3 trillion won in operating profit. The mobile unit recorded 29.2 trillion won in sales and 3.1 trillion won in operating profit, driven by steady sales of the Galaxy S25 series smartphones released in the first quarter. The TV segment improved sales of premium products, such as Neo QLED and OLED TVs, but overall earnings declined due to tepid demand and heightened competition. For the second half, Samsung Electronics said it expects a recovery in the global information technology market, led by AI and robotics, despite lingering concerns over trade uncertainties and geopolitical risks. The chip division plans to focus on meeting the growing demand for high-value-added and AI-driven products, such as HBM, and strengthening its competitiveness in advanced semiconductor technologies. It will also make efforts to increase sales of high-density and high-performance solid-state drives (SSDs) to keep up with rising demand for chips for AI data centres. The mobile division is expected to maintain momentum in the second half by focusing on its new foldable smartphones released earlier this month. Analysts expect Samsung Electronics' earnings to rebound in the second half.
Time of India
7 hours ago
- Automotive
- Time of India
Samsung says tariff agreement reduces uncertainty, expects Tesla deal to boost orders
Samsung Electronics said a trade deal that will see Washington charge 15% tariffs on imports from South Korea reduces uncertainty, as it forecast more major chip orders after signing a $16.5 billion deal with Elon Musk's Tesla . "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said of its struggling contract chipmaking business during an earnings conference call. Explore courses from Top Institutes in Please select course: Select a Course Category Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing, which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won ($3.37 billion) in optrumperating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. Live Events The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94% from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. Samsung's deal with Tesla this week came just days ahead of a much-anticipated tariff agreement with Washington announced by President Donald Trump on Wednesday that for now eases tensions with a top-10 U.S. trading partner and key Asian ally. Focus on AI chips Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung warned on Thursday that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. The customers are expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half, driven by AI chip demand due to continued investments by major cloud service providers. Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. But Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was also closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7% to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters that the figure has dropped below the 1 trillion won mark. Samsung said in a statement that inventory value adjustments to memory chips and one-off costs from the impact of U.S. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Shares of Samsung were down 1.8% in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5% lower. ($1 = 1,393.4100 won)
Yahoo
16 hours ago
- Business
- Yahoo
Marvell Technology stock soars 10% on Microsoft AI chip prospects
-- Marvell Technology (NASDAQ:MRVL) stock surged 10% Wednesday after Fubon Research analysts highlighted the company's potential significant revenue opportunity from Microsoft's (NASDAQ:MSFT) AI chip initiatives. According to Fubon Research, Microsoft has upgraded specifications for its Maia300 chip, which Marvell is developing, from 3nm with HBM3E to a more advanced 2nm with HBM4. While this has pushed the production timeline from the first quarter of 2026 to the fourth quarter, analysts believe the project represents a substantial opportunity for Marvell. The Maia300 chip is expected to begin production with 300,000-400,000 units in the fourth quarter of 2026, ramping up to 1.2-1.5 million units in 2027. With an estimated average selling price of $8,000 per chip, Fubon projects potential revenue of $2.4 billion in 2026 and $10-12 billion in 2027 from this project alone. Analysts noted that Microsoft appears to be placing "higher expectations on Maia300 by MRVL, rather than Maia200 which is its own solution." This shift comes as Microsoft reportedly faces challenges with its internal chip design capabilities, with Fubon indicating the tech giant is likely to "rely more on MRVL for the current generations." The research also highlighted that Microsoft has increased the planned volume for its Maia200 chip from 40,000-60,000 units to 150,000-200,000 units in 2026, compensating for the delayed Maia300 rollout. Fubon's report suggests Microsoft may be more generous in pricing than Amazon (NASDAQ:AMZN) Web Services, with Maia300's $8,000 ASP substantially higher than AWS Trainium 2's $1,500, despite both projects having similar turnkey margins of 55-60%. Related articles Marvell Technology stock soars 10% on Microsoft AI chip prospects Apple may raise iPhone 18 prices after Q2 pull-in, says Jefferies Kering Q2 revenue falls 18% due to weak retail, wholesale sales and tourism slump Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
24-07-2025
- Business
- Korea Herald
SK hynix posts record quarterly profit on AI chip boom
Chipmaker eyes double HBM sales this year, with next-gen chips ready for Nvidia SK hynix, the world's top memory chip-maker by revenue, hit an all-time high quarterly operating profit of 9.2 trillion won ($6.73 billion) in the April-June period, thanks to soaring demand for its high bandwidth memory chips, a core component in AI processing. Reporting the second quarter's earnings, the company said it aims to double HBM sales and shipments this year compared to 2024, as well as increase its capital expenditure beyond its initial plans for rising HBM demand starting in 2026. The chipmaker reported that it has recorded 22.2 trillion won in sales in the second quarter, up 35.4 percent on-year. The operating profit also surged 68.5 percent over the same period, and net profit came in at 6.99 trillion won. Backed by strong earnings, SK hynix' cash holdings rose by 2.7 trillion won on-quarter to 17 trillion won. Its debt ratio stood at 25 percent, with net debt ratio at 6 percent, down 4.1 trillion won from the previous quarter. "We are on track to meet our goal as a full stack AI memory provider, satisfying customers and leading market expansion through the timely launch of products with best-in-class quality and performance required by the AI ecosystem," Song Hyun-jong, president and head of Corporate Center at SK hynix, said. "We will carry out part of the planned investments preemptively this year for a smooth delivery of major products with visible demand for next year, including HBM." The strong performance was driven by the full-scale ramp up of 12-layer HBM3E sales and increased NAND flash shipments across all applications. The company also attributed its recent success to an aggressive investment by global big tech companies into AI. "There are concerns about a potential demand slowdown in the second half (of the year), but major market fluctuations seem unlikely. We plan to focus operations on products with clear demand visibility," Kim Kyu-hyun, head of DRAM Marketing, said. While HBM4 involves significant technical upgrades — including expanded (input/output) for higher bandwidth, design changes for lower power consumption and the application of logic processes to the base die — SK hynix said it is factoring in the increased production costs as much as possible into its pricing strategy. "We aim to establish optimal pricing in collaboration with customers, while maintaining a healthy level of profitability," said Kim Ki-tae, SK hynix vice president and head of HBM sales and marketing. Regarding the latest US export controls possibly weakening the role of its Chinese manufacturing facilities, SK hynix emphasized that its China fabs will remain a core part of its global memory production strategy. "Shortage in legacy products, such as DDR4 and LPDDR4, are emerging across the industry, and we see our China fab playing a key role in meeting that demand," Song said. He also forecast that long-term demand for the legacy products would remain steady, particularly from Chinese smartphone makers. Capacity for older-generation DRAM chips has tightened in the past months as global production shifts toward HBM chips and newer DRAM standards like DDR5 and LPDDR5. Over Nvidia's plan to supply the H20 chips to China, SK hynix said it is ready to respond quickly if customer demand and supply conditions align. The company currently supplies 8-layer HBM3 — the previous-generation product — for the H20. SK hynix also plans to launch its 24Gb GDDR7 in the second half of the year, which is reportedly intended for Nvidia's upcoming RTX Pro AI accelerator targeting the Chinese market. Additionally, the company is focusing on strengthening its core DRAM technology, which underpins HBM. The company said it is developing next-generation technologies such as 3D DRAM and vertical gate architectures, and plans to begin transitioning to its sixth-generation 10-nanometer-class process in the second half of this year, with full-scale adoption scheduled for next year. In the NAND business, the company said it will take a cautious investment approach, prioritizing profitability and market demand, while continuing product development in anticipation of future market recovery. The company plans to expand sales of QLC-based high-capacity eSSDs and strengthen its product portfolio built on 321-layer NAND. Regarding its M15X fab in Cheongju, SK hynix said it plans to begin operations in the fourth quarter of this year, with mass production of next-generation HBM scheduled to start next year.
